Expert Accounting Guidance Online
Unlock your potential with personalized tutoring services.
Expert Accounting Guidance Online
Unlock your potential with personalized tutoring services.
About The Accounting Tutor
Who We Are
At The Accounting Tutor, we specialize in providing personalized accounting tutoring services for mainly students . Our mission is to empower individuals with the knowledge and skills necessary to excel in the field of accounting.
1.0 Introduction to adjusting entries
The Importance of Adjusting Entries
Adjusting entries is key to ensuring that financial statements accurately represent a company's financial position and performance at the end of the accounting period.
The Four Types
In grade 11 accounting prepaid expenses are introduced with prepaid rent, prepaid insurance and supplies, we also have depreciation which are the main accounts that will be featured in adjusting entries. Note these expenses are payments that have been payed in advance.
Prepaid Rent
Rent is typically paid for an extended duration (for example, a year ahead). As rent becomes due, this asset converts into an expense for the company.
Prepaid Insurance
Insurance is typically paid upfront and is considered an asset for the business.
Supplies
The last prepaid account studied in the grade 11 course. Supplies will be bought but after use will decrease the value.
Depreciation
Depreciation is the cost over the life of a fixed asset. Depreciation shows how an asset decreases in value overtime. There are two methods of depreciation, straight-line and declining balance. Straight-line is the same amount of depreciation every time, and declining balance is where assets are depreciated at a higher rate in the early years and lower in the later years.
Attempt yourself
Here is a link with a spreadsheet. Try these yourself before looking at the example or video.
2.0 Going through Transactions
T-Accounts
Here is an example of how the different accounts work through T-accounts.
2.1 Going through Transactions
Journal
Here is an example of how the different accounts work with each other through the journal.